Latham Group, Inc. · NASDAQ:SWIM
Latham — Q1 2022 Earnings Presentation
12 slides from Latham's earnings presentation, May 12, 2022
Slide 1: Q1 2022 Earnings Call
Q1 2022 EARNINGS CALL MAY 12, 2022
Slide 2: Disclaimer
Disclaimer Forward-looking Statements Some of the statements contained in this presentation are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements
Slide 3: Q1 2022 Highlights
Q1 2022 Highlights NET SALES ($ IN MILLIONS) • Encouraged by the early excitement and anticipation from both consumers +29% $192 and dealers leading into peak pool building season $149 • Opened new world-class training center in Florida and training schedule is quickly filling up for the rest of thi
Slide 4: Q2 2022 Update
Q2 2022 Update Update Responsive Actions • Temporary shortage of a material used in production of • Leveraging vendor relationships to ramp up in fiberglass flake supply; expect to return to full availability in early Q3’22 unique fiberglass flake for several fiberglass color offerings • Believe the
Slide 5: Looking Ahead
Looking Ahead Well positioned heading into peak pool season Building our business for the long-term • Feel good about the actions we are taking to navigate Q2 • Expanding steel panel manufacturing capabilities with new state- challenges of-the-art, highly automated line in Fort Wayne, Indiana o Expe
Slide 6: Q1 2022 Financial Highlights
Q1 2022 Financial Highlights • Continued to realize the benefits of pricing actions Net sales increased 29% to $192 million • Net sales growth across all three product lines • Pricing actions continue to offset inflation • Increasing ASPs, particularly in fiberglass Gross margins expanded 160 bps to
Slide 7: Capital Allocation Priorities
7 Capital Allocation Priorities • Increased capital investments in 2018 from historical levels as business transformation Reinvesting in the business to enhance future began to take hold growth opportunities • Began accelerating capex investments in 2021 to increase fiberglass capacity • Focused on
Slide 8: Financial Outlook
Financial Outlook FISCAL 2022 OUTLOOK1 THREE TO FIVE YEAR TARGETS2 Net Sales Net Sales Growth $850 million to $880 million 10% to 12% Adjusted EBITDA Adjusted EBITDA Growth $185 million to $205 million 12% to 15% Capital Expenditures Adjusted EBITDA Margin $45 million to $60 million +500 bps Key Dri
Slide 9: Latham: A Compelling Growth Story
Latham: A Compelling Growth Story Serving a large and attractive market benefitting from material conversion The leading consumer brand in the residential pool market Unique direct-to-homeowner model driving business for our dealer partners 1 Broadest portfolio of branded products known for quality,
Slide 10: The Pool Company
The Pool Company *
Slide 11: Appendix
Appendix
Slide 12: Non-GAAP Reconciliations
Non-GAAP Reconciliations (in thousands) Fiscal Quarter Ended April 2, 2022 April 3, 2021 Net (loss) income $ (2,840) $ 8,533 Depreciation and amortization 9,494 7,900 Interest expense 1,765 9,056 Income tax (benefit) expense 5,307 2,883 Loss on sale and disposal of property and equipment — 165 Restr